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1. Petition for quashing proceedings under sections 276C and 277 of the Income-tax Act, 1961. Analysis: The petitioner filed a petition under section 482 of the Code of Criminal Procedure seeking to quash the proceedings pending in the Special Court of Economic Offences. The case involved a complaint filed under sections 276C and 277 of the Income-tax Act, 1961. The petitioner, an assessee to income tax, initially filed a return showing income of Rs. 87,240 for the assessment year 1989-90. Subsequently, it was discovered that an amount of Rs. 1,09,050 had not been included in the return. The petitioner deposited the necessary tax with interest on the omitted amount and filed a revised return. The complaint alleged wilful attempt to evade tax by concealing income and filing a revised return only after detection of the concealment. The petitioner contended that the allegation was misconceived as the revised return was filed within the period allowed under section 139(5) of the Act. The petitioner explained that the omission was due to a misunderstanding of the legal provision regarding cash transactions exceeding Rs. 10,000. The opposite party did not dispute the payment of tax on the omitted amount or the legality of filing a revised return within the stipulated time. The court considered the undisputed facts and held that there was no deliberate concealment of income to evade tax. It was concluded that the complaint alleging tax evasion was not legally tenable in the circumstances of the case. Therefore, the court allowed the petition and quashed the prosecution in Complaint Case No. 27 of 1992.
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